Know about RERA and ways it act

RERA - Real Estate Regulatory Act, is a regulation and development act which was brought to life in 2016, it was made to protect the home buyers and improve transparency during real estate purchases. It also defines the provision and penalties during oversights.

It's not mandatory for small and medium developers but if you are getting a negative vibe from your developer or if he has a mixed reputation then it's better to ask for RERA.

Possession date:

It's very important to have possession date mentioned clearly on the property document. RERA makes sure that the customer is delivered the property before or on the mentioned date of possession in the document.

Consent:

RERA also makes sure that the developer or constructor of your building doesn't alter the project details from plans to any small specification that was promised to you in the document. Also, the developer can't make you forcefully sign an altered contract.

Why we need RERA:

It was brought into play to make processes more simple and transparent by providing the customer the power they were always looking for.

How RERA affects the buyers:

• Any minor change has to be informed to the customer

• Properties can't launch or advertisement can be made before government approval

• Mandatory sharing of information - project plan, layout, government approvals, land title status, sub-contractors.

• Increased quality of the construction because of the defect liability for 5 years

• Consent from 2/3rd allottees for transferring majority rights to 3rd party

• Consent from 2/3rd allottees about any other addition or alteration

Registration:

Registration is made compulsory for any project exceeding 500 sq.ft or greater than 8 apartment

Sale agreement:

No more hidden clause that would make the customer liable cannot be made anymore.

Penalty:

Strict monetary punishment and even imprisonment can be made under violation of RERA.

Reserve amount:

One major reason for projects getting delayed was, on an average 70% of funds collected by builders was usually used on a new project to begin. This was cut down by reverse amount standardization that made the builder to only consume amount which was required for building on stage by stage basis.

So if your builder has a new project or an ongoing project near by. Then only is a RERA required.

We hope our blog helped you with what you are looking for :).

If not please leave a comment below and we'll get back to you.